Latest Ratios: P/E Ratio 336.9x · EV/EBITDA 44.7x · ROE 3.0%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $47.5B | $35.4B | $26.0B | $49.2B | $46.7B | $42.5B | $42.0B | $17.4B | $20.7B | $22.7B | $17.3B |
| Enterprise Value | $52.8B | $40.7B | $30.9B | $54.9B | $53.1B | $50.1B | $50.8B | $26.6B | $30.6B | $24.9B | $19.4B |
| P/E Ratio → | 336.88 | 248.50 | — | 25.78 | 20.84 | 33.10 | 119.40 | 30.54 | 58.42 | 89.57 | 102.47 |
| P/S Ratio | 10.07 | 7.51 | 5.91 | 6.44 | 5.53 | 6.23 | 7.72 | 3.29 | 3.88 | 5.71 | 5.08 |
| P/B Ratio | 7.46 | 5.50 | 3.67 | 7.38 | 7.17 | 7.21 | 7.87 | 3.11 | 3.92 | 6.93 | 5.30 |
| P/FCF | 54.51 | 40.64 | 33.69 | 18.85 | 14.89 | 17.20 | 23.03 | 11.77 | 14.34 | 18.75 | 17.60 |
| P/OCF | 49.35 | 36.79 | 28.96 | 16.99 | 12.89 | 14.96 | 21.92 | 11.25 | 12.38 | 16.02 | 16.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.63 | 7.02 | 7.19 | 6.29 | 7.34 | 9.34 | 5.04 | 5.72 | 6.26 | 5.68 |
| EV / EBITDA | 44.75 | 34.50 | 29.53 | 15.90 | 12.90 | 16.72 | 23.61 | 14.28 | 19.24 | 16.05 | 25.99 |
| EV / EBIT | 107.68 | 57.20 | 106.46 | 21.46 | 17.09 | 28.97 | 74.77 | 42.17 | 44.30 | 26.60 | 82.02 |
| EV / FCF | — | 46.72 | 40.03 | 21.04 | 16.93 | 20.24 | 27.85 | 18.01 | 21.17 | 20.54 | 19.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.7% | 57.7% | 56.1% | 65.4% | 67.5% | 65.2% | 62.1% | 61.5% | 54.8% | 60.8% | 51.6% |
| Operating Margin | 10.4% | 10.4% | 6.7% | 33.7% | 36.9% | 27.1% | 18.4% | 12.3% | 13.4% | 23.5% | 8.1% |
| Net Profit Margin | 4.3% | 4.3% | -0.0% | 25.0% | 26.5% | 18.8% | 6.4% | 10.8% | 6.7% | 6.4% | 4.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.0% | 3.0% | -0.0% | 29.0% | 36.1% | 22.9% | 6.4% | 10.5% | 8.3% | 7.8% | 6.1% |
| ROA | 1.4% | 1.4% | -0.0% | 11.8% | 13.7% | 7.9% | 2.1% | 3.2% | 2.7% | 3.2% | 2.5% |
| ROIC | 3.1% | 3.1% | 1.8% | 15.3% | 17.8% | 10.1% | 5.2% | 3.2% | 5.2% | 13.1% | 5.3% |
| ROCE | 3.6% | 3.6% | 2.1% | 19.3% | 22.2% | 12.8% | 6.7% | 4.1% | 6.4% | 14.2% | 4.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.86 | 0.86 | 0.80 | 0.91 | 1.01 | 1.33 | 1.70 | 1.72 | 1.95 | 0.94 | 0.90 |
| Debt / EBITDA | 4.69 | 4.69 | 5.41 | 1.75 | 1.60 | 2.62 | 4.22 | 5.17 | 6.48 | 1.98 | 3.96 |
| Net Debt / Equity | — | 0.82 | 0.69 | 0.86 | 0.98 | 1.28 | 1.65 | 1.65 | 1.87 | 0.66 | 0.62 |
| Net Debt / EBITDA | 4.49 | 4.49 | 4.68 | 1.66 | 1.55 | 2.52 | 4.09 | 4.95 | 6.21 | 1.40 | 2.74 |
| Debt / FCF | — | 6.08 | 6.34 | 2.19 | 2.03 | 3.05 | 4.82 | 6.25 | 6.83 | 1.79 | 2.07 |
| Interest Coverage | 3.21 | 3.21 | 1.15 | 12.89 | 15.22 | 6.72 | 1.90 | 1.27 | 1.37 | 4.71 | 1.61 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.09 | 2.09 | 2.59 | 1.20 | 0.98 | 1.75 | 0.89 | 1.35 | 0.93 | 1.66 | 3.27 |
| Quick Ratio | 1.18 | 1.18 | 1.47 | 0.67 | 0.56 | 1.14 | 0.61 | 0.94 | 0.63 | 1.43 | 2.68 |
| Cash Ratio | 0.21 | 0.21 | 0.67 | 0.13 | 0.08 | 0.23 | 0.12 | 0.25 | 0.18 | 1.09 | 1.85 |
| Asset Turnover | — | 0.33 | 0.29 | 0.48 | 0.52 | 0.42 | 0.33 | 0.30 | 0.29 | 0.48 | 0.44 |
| Inventory Turnover | 1.92 | 1.92 | 1.49 | 2.01 | 2.07 | 2.78 | 3.10 | 2.96 | 3.40 | 3.28 | 3.96 |
| Days Sales Outstanding | — | 69.29 | 57.19 | 54.68 | 56.46 | 57.40 | 66.96 | 64.64 | 60.08 | 51.69 | 51.24 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.1% | 2.8% | 3.8% | 1.9% | 1.5% | 1.2% | 0.9% | 2.0% | 1.7% | 1.5% | 1.8% |
| Payout Ratio | 486.6% | 486.6% | — | 47.8% | 31.1% | 39.2% | 111.1% | 61.4% | 96.8% | 132.1% | 191.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.3% | 0.4% | — | 3.9% | 4.8% | 3.0% | 0.8% | 3.3% | 1.7% | 1.1% | 1.0% |
| FCF Yield | 1.8% | 2.5% | 3.0% | 5.3% | 6.7% | 5.8% | 4.3% | 8.5% | 7.0% | 5.3% | 5.7% |
| Buyback Yield | 0.4% | 0.5% | 0.4% | 2.0% | 2.0% | 1.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.4% | 3.3% | 4.1% | 3.9% | 3.5% | 2.2% | 1.0% | 2.0% | 1.7% | 1.5% | 1.8% |
| Shares Outstanding | — | $548M | $537M | $548M | $557M | $566M | $541M | $512M | $500M | $498M | $470M |
Cyclical inventory destocking pressure
According to current market data, MCHP trades at a trailing P/E of 338.19 and an EV/EBITDA of 44.90, suggesting that investors are pricing the stock based on mid-cycle earnings recovery potential rather than the depressed profitability levels observed in the most recent trailing twelve-month period.
The elevated valuation multiples appear to reflect a market consensus that the current cyclical downturn is temporary and that the company's proprietary ecosystem will drive a return to historical margin profiles. However, the forward P/E of 56.08 indicates that the market expects significant earnings growth, which may be difficult to achieve if industrial demand remains sluggish.
Based on reported financial statements, MCHP's ROIC has struggled to maintain momentum, falling to 1.4% in 2026Q4 from a peak of 3.1% in 2024Q3, which highlights the difficulty of compounding returns on invested capital during periods of significant under-utilization of internal manufacturing assets.
The compression in ROIC suggests that the company's high-fixed-cost manufacturing model is currently acting as a drag on capital efficiency. Investors should monitor whether the recent recovery in gross margins can translate into a sustained improvement in ROIC as factory utilization rates normalize toward historical levels.
As reported in recent quarterly filings, MCHP's cash conversion cycle has expanded to 208 days in 2026Q4, driven largely by an elevated days inventory outstanding of 184 days, which indicates that the company is currently carrying significant channel inventory that may limit near-term cash flow generation.
The extended CCC suggests that the company's supply chain is currently burdened by the inventory destocking phase common in the semiconductor industry. This inefficiency warrants investigation, as it ties up capital that could otherwise be deployed toward dividends or debt reduction during this period of margin volatility.
Based on an analysis of MCHP's business model, the trailing P/E ratio is frequently misapplied by market participants, as it obscures the true earning power of the company by failing to account for the extreme volatility in margins caused by internal wafer fab utilization fluctuations.
Investors should instead focus on normalized mid-cycle earnings or EV/Sales multiples to better gauge the company's valuation relative to its long-term potential. Relying on P/E during a cyclical trough often leads to an overestimation of risk or an underestimation of the recovery trajectory inherent in the company's proprietary product portfolio.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying MCHP stock.
Microchip Technology Incorporated's current P/E ratio is 336.9x. The historical average is 40.3x. This places it at the 100th percentile of its historical range.
Microchip Technology Incorporated's current EV/EBITDA is 44.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.6x.
Microchip Technology Incorporated's return on equity (ROE) is 3.0%. The historical average is 15.4%.
Based on historical data, Microchip Technology Incorporated is trading at a P/E of 336.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Microchip Technology Incorporated's current dividend yield is 2.05% with a payout ratio of 486.6%.
Microchip Technology Incorporated has 57.7% gross margin and 10.4% operating margin. Operating margin between 10-20% is typical for established companies.
Microchip Technology Incorporated's Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.